KAMPALA, July 6, 2025 – Many members of Uganda’s business community still struggle to understand and appreciate the cooperative business model as a tool for lifting people out of poverty, according to businessman Augustus Ceasar Mulenga.
Speaking after his nomination to contest for Chairperson of the Entrepreneurs’ League within the ruling National Resistance Movement [NRM] party, Mulenga emphasised his commitment to advocating for affordable credit for traders and entrepreneurs.
However, he also urged the public to shift focus from handouts to structured, sustainable models such as cooperatives.
Mulenga, who operates a chain of businesses across various sectors including media, tourism, and finance, recently told journalists at the NRM Secretariat in Kampala that cooperatives present a viable path to economic empowerment, but only if Ugandans first understand how they function.
“We could drive economic growth through cooperatives, but this culture of relying on free money undermines their purpose,” he said. “We need to educate our people on how cooperatives work, so that we empower them rather than entrench dependency.”
He stressed that groups such as market vendors and small-scale traders must first embrace structured business models before seeking access to affordable credit.
“If you want low-cost financing, organise yourselves into proper frameworks, like cooperatives,and take initiative. Do not just wait for ‘Museveni money’. These models can open doors to meaningful financing,” Mulenga urged.
His comments come amid persistent calls from the business community for more accessible and affordable credit. High interest rates and limited access to capital continue to be major obstacles to business growth in Uganda.
During a recent National Budget dialogue, civil society groups highlighted limited credit access as one of the primary threats to budgetary performance and overall economic development.
In response, the government has launched several financing initiatives targeting different sectors of the population. These include a Shs 175 billion interest-free facility for large-scale commercial farmers, Shs 2.43 trillion for wealth creation, Shs 1.059 trillion for the Parish Development Model, Shs 100 billion for the Emyooga programme, and Shs 1 trillion injected into the Uganda Development Bank.
Additional allocations include Shs 187.1 billion to the Uganda Development Corporation, Shs 50 billion for enterprise support, Shs 231.3 billion under the GROW fund for women-led businesses, Shs 275 billion for the INVITE programme [Investment for Industrial Transformation and Empowerment], and Shs 48.5 billion for microfinance support.
Despite consistent political praise for cooperatives, the traditional cooperative sector—once proven effective in revitalising rural economies—has received relatively little direct investment.
Mulenga, reflecting on his nationwide campaign tour, said he encountered many areas with untapped potential where cooperatives could transform livelihoods.
“I’ve travelled across all sub-regions of Uganda and observed countless issues,” he noted. “Entrepreneurs feel underrepresented, isolated, and underserved. We must now focus on delivering services through the appropriate channels.”
He also identified challenges in the tax regime, citing widespread confusion, poor compliance, and lack of proper business recordkeeping within the SME sector.
Mulenga proposed the establishment of at least six sub-regional SACCOs, which he envisions evolving into development banks. These would offer affordable credit and support value addition, particularly in agriculture.
In addition to his business and political interests, Mulenga currently serves as the Honorary Consul of Vietnam to Uganda, a role he has held since 2017. In this capacity, he promotes Vietnamese investment in sectors such as agriculture, health, education, tourism, and coffee value addition.
https://thecooperator.news/cic-africa-uganda-ten-years-of-keeping-our-word/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
-
-
-
-
